How can you use performance data to improve multi-unit franchise locations?

Franchising is a "hybrid" form of business model in that it combines aspects of a sole proprietorship with those of a corporation. Franchising allows a business owner to grown a business by selling the rights to use their brand and business model instead of building new units on their own. A franchise can be a good way for a novice entrepreneur to get started because he can follow a successful business blueprint. #HAPPYFRANCHISING2020#

Most often, franchisees will make adjustments independently if they can see they are underperforming. After all, they should be the ones most motivated for the success of their business. Providing them with evidence is much more potent than random observations or vague assertions. What should you benchmark? Only the actionable figures that are reliable and trackable. Some examples are customer feedback, service times, evaluation scores, and product quality scoring. Having a uniform way to put a number on the items that affect your profit is critical, just as sharing your findings with the franchisees is as well.

Everything starts with the WHYs.. Clear vision drives specific KPIs, both quantitative and qualitative. I’d add that alignment of those KPIs with our franchise partners would create even more value because it ensures all stakeholders are pushing the business in the same direction.

I would agree with most of these but would also emphasize franchisee satisfaction as a key metric. Large foodservice systems like McDonald’s and many others in the industry use this as a critical factor in measuring the health of the system. It can be double-edged though as it can also contribute to more infighting if not properly managed. Happy franchisees are a big part of the overall equation though (objectivity and mediation are also important considerations to take into account to balance this metric in the overall scorecard, especially for #restaurant franchises).

Absolutely, having clear goals and KPIs is crucial for any franchise operation. It sets the direction and gives everyone a measurable target to aim for. When you know exactly what you're striving to achieve—be it boosting customer satisfaction, increasing sales, or improving efficiency—you can allocate resources and efforts more effectively. The key is to align these objectives not just with your own aspirations but also with the broader goals set by your franchisor. This alignment ensures everyone is on the same page, making it easier to gauge performance and make necessary adjustments. KPIs serve as your roadmap, helping you navigate the business landscape more effectively.

Data is your best friend when it comes to making informed decisions. Collection is step one; interpretation is where the magic happens. Tools like POS systems or CRM software can automate data collection, allowing you to focus on analysis. Dashboards are handy for a multi-unit owner like myself. They give a snapshot view of performance metrics across all locations, making spotting trends, challenges, or opportunities easier. Regular analysis helps to catch issues before they escalate and to identify what's working well so you can double down on it. Comparing data over time and against benchmarks provides the context you need to assess how you're doing. It's like having a constant pulse check on the health of your business.

For a modern franchise system it is essential for the franchisor to establish a common central accounting platform, standard chart of accounts and get buy-in on reporting compliance from franchise owners. This way you have most if not all of the units reporting results and the franchisees can see how they compare to all units or select units by any KPI in their monthly or weekly dashboard. Additionally both franchise owners and the franchisor can for example objectively look at effectiveness of marketing campaigns, LTOs and offers together to better manage the marketing spend.

Imagine you're a doctor and your patient has multiple symptoms. You need to collect all of the data (symptoms, medical history, etc.) in order to make a diagnosis. Once you have all of the data, you need to analyze it to determine the cause of the patient's symptoms. The same principle applies to running a franchise. You need to collect and analyze data from all of your locations in order to identify trends and make informed business decisions.

Expandir um negócio geograficamente pode ser uma excelente oportunidade para uma franquia aumentar sua participa??o no mercado e receita. No entanto, também pode ser um movimento arriscado que pode levar a perdas significativas se n?o for feito corretamente. Veja alguns dos erros cometidos: - Erro no 1: Falta de pesquisa - Erro no 2: Falta de conhecimento local - Erro no 3: Falha em se adaptar aos regulamentos locais - Erro no 4: comunica??o e colabora??o deficientes - Erro no 5: Confian?a excessiva nos processos existentes - Erro no 6: Falta de planejamento financeiro Para evitar esses erros, as empresas devem realizar uma análise financeira completa para entender os custos associados à expans?o para um novo mercado.

In the analysis process it might be interesting to make scorings of the different KPIs and through this show more easily the progress that has been made by the franchisees. Reporting should be done on a regular basis. In my opinion a KPI with only one yearly communication isn’t suited to manage and support the franchisees in their progress. It’s not about getting a good grade its about taking the road of progress.

19 century quote from the famous novelist : you can never learn as much from books as you can when you see it with your own eyes

Data is only as useful as your ability to interpret it and identify the gaps and opportunities for improvement. Once you have identified the gaps and opportunities, you can start to develop strategies to address them. For example, if you notice that sales are declining on Tuesdays, you could try offering a special promotion on that day. Or, if you notice that customer satisfaction is higher at locations with a dedicated customer service manager, you could consider implementing that model at all of your locations.

Figures alone are interesting but adding analysis by humans will result in the right (creative) solutions, good collaboration with your franchisees and in better results. You can only improve what you measure, but you will only obtain improvement if the measures are followed by analysis, actions plans, their execution and follow-up.

Franchising has changed quite a bit these days as well. Franchisors have multiple brands and Franchisees do as well. Having an overall view of your entire portfolio and viewing it geo-spatially on a map sometimes provides insights that you might miss looking an numerous spreadsheets that are managed by various departments. Creating that single source of truth, marrying internal data with third-party data and viewing it on a map is critical to identifying those gaps and opportunities.

Don’t rely on data alone. Many multi unit leaders analyze, analyze and analyze. Get out and see. Visit. See for yourself. Talk to the teams and ask them the why’s, the what would they suggest, the what do they needs. It’s easy to sit and analyze and then “dictate” the solution. Be a part of the solution and then go and visit again to see how it’s working.

Spot on. Once you've identified what needs to change, the real work begins. The implementation phase can make or break your improvement plans. I've found it's essential to involve your team—this is a collaborative effort. Make sure everyone knows what the new targets are and why they matter. Training and resources are crucial, but don't underestimate the power of incentives to drive behavior. Monitoring is the other half of the equation. It's not just a 'set it and forget it' situation. Regularly check how the changes are affecting your KPIs and be prepared to make adjustments. Adaptability based on real-time data is key to making lasting improvements.

In implementing changes in a franchise, you need to train your franchisees and staff on how to implement the changes. You also need to make sure that they have the necessary resources to do so. Once the changes are in place, you need to monitor and evaluate the results. Are you seeing the desired improvement in your KPIs? Are your customers and staff happy with the changes? If not, make adjustments as needed.

Un plan de acción concreto con estrategias actividades, responsables y tiempos es lo más efectivo para implementar cualquier proceso. También se debe considerar el apoyo del personal, sobre todo de los líderes para comprender y ejecutar los.planes de acción.

Absolutely, sharing best practices across your network isn't just smart—it's essential for scalable success. In my experience, what works in one location often translates well to others. Highlighting success stories and sharing them can build a culture of continuous improvement. This also serves as a motivator, encouraging everyone to contribute their best. Newsletters and webinars are excellent tools, but so are face-to-face discussions where ideas can flow freely. The goal is not just to boost your own franchise locations but also to strengthen the brand as a whole. Trust me, an environment that fosters learning and collaboration is a powerful asset for any entrepreneur.

OKRs, ou Objetivos e Principais Resultados, podem ser uma ferramenta útil para as redes de franquias alinharem suas metas e impulsionarem o desempenho. Aqui est?o alguns exemplos de como as redes de franquias podem usar OKRs: 1. Aumentar as vendas 2. Melhorar a satisfa??o do cliente 3. Expandir a franquia 4. Melhorar o desempenho do franqueado: 5. Desenvolver novos produtos ou servi?os:. No geral, os OKRs podem ser uma ferramenta útil para as redes de franquias definirem metas claras e acompanharem o progresso para atingir essas metas. Ao alinhar os objetivos e os principais resultados em toda a rede, os franqueados podem trabalhar juntos em dire??o a um objetivo comum e impulsionar o desempenho geral.

Sharing of information and knowledge is the key. Be transparent with your franchisees about all major KPIs and make it possible for them to benchmark with their colleagues. The improvement of the profitability of a business is often a sum of small changes that can be found through internal benchmarking in addition to external research for best practices.

Hacer con regularidad visitas encubiertas permite visualizar no sólo la realidad de las operaciones sino conocer los mejores procesos y a quienes los implementan para reco ofertes sus esfuerzos y replicarlo replicarlo otras unidades de negocio.

Subway introduced a population weighted ranking scheme, so that each development representative could see exactly where he or she stood monthly in comparison with his/her peers. This internal ranking spurred on the competitive juices for them to do better next month.

It's network in your community or you can say public relations only works here. Because it's matter of trust and clear communication.

Hay que considerar tener a las personas correctas y no descuidar las franquicias. En una ocasión por querer crecer rápido abrí 2 unidades en distintas ciudades a donde no me podía desplazar continuamente. Las unidades funcionaron con cierta normalidad pero no fueron capaces de seguir el ritmo o gastaron más presupuesto del necesario en publicidad. Es importante darles la debida atención y tener un equipo dedicado a atenderlas, apoyarlas y supervisarlas.

Every brand comes with its own ethos and mission! The commercial strategy has to a good mix of XQ, IQ and EQ which stand for executional excellence, intelligence quotient and emotional intelligence. They are at the core of a successful strategy. XQ refers to all operational excellence in executing the mandates with full adherence to brand values and a clear communication to the stakeholders. An apt IQ enables managers to take the right decisions to align all the stakeholders towards the commercial objectives and the relevant KPI's. A customer centric sales strategy provides a seemless customer experience, hence EQ - emotional intelliegence plays in. Leading your teams requires a growth mindset.